The
implementation of comprehensive budget management is an effective means of
financial management for enterprises, and it is of great significance to
establish modern enterprise system, improve management level and enhance
competitiveness.

In
practice, since some enterprises do not take comprehensive budget management as
a tool for daily work, and do not take comprehensive budget management as a
specific means to implement enterprise development strategy, the budget goal is
short-term, and it is difficult to achieve the goal of improving the core
competitiveness and overall value of the enterprise through budget management.
In addition, the unclear orientation of budget management also leads to low efficiency
and low efficiency of budget management.

In
practice, some enterprises have established corresponding budget management
system according to the requirements of comprehensive budget management, but
the organizational structure is not sound, the responsibility is not clear, and
the management responsibility is difficult to be investigated. In addition, due
to the lack of effective communication between organizations at all levels and
between organizations and employees, it is difficult to cooperate and
coordinate with each other in the overall budget management. Therefore, the
comprehensive budget management of enterprise lacks a strong organizational
system to organize implementation, and its management effect can be imagined.

Some
enterprises either ignore the changes of the internal and external environment
and the changes of the strategic goals of the enterprise and do not revise the
budget in time. Or the management of the business needs only and arbitrary
adjustment. Moreover, there is no corresponding check and balance mechanism for
the budget adjustment, and the budget is virtually empty. Those over-budget or
no-budget projects are carried out due to the abuse of the power of budget
adjustment, which leads to the lack of authority and seriousness of the budget.

Practice,
some enterprises lack of understanding of the importance of assessment of
budget, budget assessment and a lack of proper position in the whole
performance appraisal system, and also the lack of effective and scientific
budget examination system, at the same time, in the implementation of the
budget evaluation often is not strict, the appraisal link become a mere
formality, and set up incentive mechanism is unreasonable, the positive role of
budget management and didn't get to play. Some companies do not even include
the budget assessment into their performance evaluation system. The lack of
budget evaluation and corresponding incentive measures directly affects the
enthusiasm of the budget enforcement agencies and employees to implement the
budget.

At
present, China's economic system is in the era of market economy, and operators
are working to fulfill the "fiduciary responsibility" given by
investors. At this time, enterprise operators should not only be responsible
for the business performance of the enterprise, but also for the development
and expansion of the enterprise, and more importantly, they should be
responsible for realizing the enterprise goal of maximization of shareholders'
equity. Therefore, the enterprise budget management at this stage must
implement the strategy oriented management mode. The specific method is as
follows: first, the strategic target is converted into the budget target, then
the budget target is decomposed into the sub-target of each budget executing
agency, and finally the sub-target is extended to each employee. It is
precisely because of the advanced nature of the strategy-oriented budget
management model that the implementation of this model helps to improve the
overall budget management level of enterprises.

Enterprises
should establish inter-related multi-level budget management organizations
according to their organizational structure, including the board of directors,
budget management committee, budget working group and budget executive body.

As
the leader of comprehensive budget management, the board of directors is mainly
responsible for the determination of budget arrangement principles and overall
budget objectives, the formulation of annual financial budget plans and the
formulation of comprehensive budget management system. It has the right to
review the budgets and the right to monitor and inspect the day-to-day
implementation and results of the budgets.

The
budget management committee is the organizer of the overall budget management. The
general manager of the company is the director of the committee. Budget
management committee is responsible for determining principle and carrying out
overall budget target, budget negotiation and adjust, the process of making the
draft budget and approval and to the approved budget issued to the budget
implementation agencies to carry out, and the implementation of budget analysis
and assessment, and within the scope of authorization processing and decision
budget management on major issues.

The
budget working group is the daily working body of comprehensive budget
management, mainly responsible for the compilation of budget draft, the
decomposition and implementation of budget indicators, the collection and
processing of budget feedback information and the communication of budget.

The
budget executive body is the executive of overall budget management, which is
generally divided into operational budget executive body and managerial budget
executive body. The budget implementation agency is mainly responsible for the
analysis and demonstration of the initial budget target, the implementation and
implementation of the budget review target, as well as various business and
management work carried out around the realization of the budget target.

In
order to compile a high-quality budget, it must be achieved that the budget
must reflect the development strategy of the enterprise. A budget without a
strategy is a budget without competitiveness. At the same time, the budget goal
should also reflect the strategic priorities of the enterprise and further
embody the strategy, so that it can be better implemented and implemented. In
this way, the core competitiveness of the enterprise can be improved and the
overall value of the enterprise can be enhanced. Budget arrangements must align
with strategic objectives. Enterprises must continue to meet the basic needs of
the market rather than just stay with the products and services currently
offered. Therefore, the budget arrangement of the enterprise must fully
implement the development strategy of the enterprise, which should not only
connect with the strategic target, but also ensure the success of docking by
following the following procedures: first, conduct detailed market research and
study the possible impact of changes in the basic market demand on the
enterprise; Secondly, understand the advanced level of the industry, and then
determine the level of the enterprise to achieve; Thirdly, I will understand
the situation of competitors, and then analyze the external environment,
internal resources, capabilities and core competitiveness of the enterprise, as
well as the advantages, disadvantages, opportunities and threats of the
enterprise. Finally, according to the enterprise's countermeasures and make
specific budget arrangements. Only by aligning with the company's strategic
objectives can we compile a high-quality budget.

The
level of overall budget management is closely related to the position and
function of strategic budget objectives in performance evaluation. The traditional
performance evaluation basically adopts the method of comparison with the same
period of last year, which often ignores the need of enterprise development
strategy. Therefore, only by taking the strategic budget target as the basis of
performance evaluation and comparing the actual and budget can the assessment
become a comprehensive reflection on the basis of careful analysis of
differences. Such difference analysis includes both the analysis of objective
environmental factors and the analysis of the budget implementing agency's own
factors. At the same time, the participation degree and quality of the budget
should be taken as the qualitative indicators to conduct strict assessment on
the budget implementation agencies, so that the assessment work can be combined
with the quantitative indicators and qualitative indicators.

To
improve the level of overall budget management, enterprises should
comprehensively use the above countermeasures. Among them, strategic budget
management is the first priority, sound management organization is the
guarantee, full participation in the budget is the foundation, improve the
level of compilation is the foundation, timely adjustment of the budget is the
means, ensure that the assessment is in place is the key.